European Enterprises Race to Implement AI and Automation, But Strategy Lags Behind Speed

New research from Digitate reveals 92% of European organizations have implemented AI and automation in the last two years, with an average investment of €103.4M

European enterprises are rapidly deploying artificial intelligence (AI) and automation technologies, with 92% of organizations having implemented these solutions over the last two years, according to new research from Digitate, a leading provider of AI-powered software for IT and business operations. However, the report, titled ‘The Race to Outpace: How AI and Automation are Driving European Enterprises Across the Finish Line,’ looks at the state of enterprise AI and automation adoption, challenges and risks, and implementation in relation to future outlook, and suggests that while adoption is widespread, many organizations are still working to develop comprehensive strategies for these technologies.

Also Read: OpenPad AI Raises $2Million To Transform Web3 Investments With Decentralized AI Analytics

“European enterprises clearly recognize the transformative potential of AI and automation, particularly in addressing their most pressing operational challenges”

The study, which surveyed 900 IT decision-makers across seven European countries, found that organizations have invested an average of €103.4M in AI and automation implementations over the last two years, with over half (59%) spending up to €295M. These investments are yielding significant returns, with 86% of organizations reporting ROI averaging €154.7M.

“European enterprises clearly recognize the transformative potential of AI and automation, particularly in addressing their most pressing operational challenges,” said Ritu Dubey, Head of New Business Sales and Market Development, Digitate. “However, the research indicates that many organizations are implementing these technologies on a departmental basis rather than as part of an integrated vision. To maximize the value of these substantial investments, enterprises need to develop more comprehensive strategies.”

Key findings from the research include:

• Time savings (60%), greater efficiency (57%), and increased productivity (55%) are the primary benefits organizations have realized from AI and automation implementations
• IT operations is the leading area for deployment, with 81% of organizations using automation and 62% using AI in their IT departments
• 94% of organizations plan to change their cloud strategy over the next 2-3 years, with 54% transitioning to a multi-cloud strategy
• Organizations expect a dramatic shift toward autonomous operations in the next five years, with the number of companies using automation that learns and adapts with minimal human input projected to more than double from 7% to 20%

Despite the enthusiasm for these technologies, organizations face several challenges in implementation. Budget constraints and lack of technical skills (both 29%) are the top obstacles, followed by data collection and management issues (28%). Additionally, 43% of organizations report that their current implementations still require more human intervention than desired.

The research revealed notable regional variations in adoption and implementation:

• Finland leads in generative AI adoption with a 98% deployment rate
• UK organizations particularly struggle with technical skills gaps, citing this as their primary obstacle above budget constraints
• French companies show more caution, with 24% reporting they have not yet widely deployed generative AI tools—the highest percentage among surveyed countries

Looking ahead, 78% of respondents plan to implement additional AI or automation within the next two years, with 40% aiming to have new tools in place by the end of 2024. The focus areas for future deployment include IT operations (74%), cybersecurity (56%), and network monitoring (39%).

Also Read: AiThority Interview with Shoeb Javed, Chief Product Officer at iGrafx

[To share your insights with us as part of editorial or sponsored content, please write to psen@itechseries.com]